The need for human resources outsourcing firms is steadily
increasing as more small-business owners realize that managing HR
functions-from negotiating complex benefit plans to maintaining
employee records-for 15 or 20 people isn't as easy as it might
first appear. If you've got a knack for 401(k) plans and
putting together employee manuals, then why not consider
capitalizing on the newest trend in human resources: virtual
HR.
HR is just one of the latest industries to jump on the online
bandwagon, but unlike other companies, they seem to have found
their audience by providing resources that actually make running a
business easier. By offering entrepreneurs online access to such HR
tools as recruiting materials, benefits packages and employee
record maintenance, virtual HR firms are providing the solutions
their clients need to keep up with the increasing demands of their
growing companies.
"Smaller businesses [often] don't have the knowledge,
time or resources to address HR issues completely within the
organization," says Dennis Abraham, president of Abraham & Aaron, a human
resource consulting and outsourcing firm in Pleasanton, California.
"An awful lot of our clients became clients because
they're now in trouble."
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According to International Data Corp. (IDC), U.S. companies
spent $7.3 billion on HR outsourcing services in 1999. IDC predicts
that amount will reach $10.2 billion by 2003. "More businesses
are realizing they can manage their businesses better, cheaper and
easier without an in-house HR department," says Andrew
Kurtzig, founder of eBenefits, a provider of online
human resources services to small and growing businesses.
The cost and complexity of managing employees is increasing due
to new laws and regulations employers must comply with. Employees
also want more benefits, training, policies and support. According
to the SBA, the annual cost of regulation per employee is about
$5,500 for a company with less than 20 employees. The cost is
significantly lower for businesses with more than 500
employees-$3,000 per employee. As a result, small-business owners
are looking to HR firms as a cost-effective solution to handling
employee issues and concerns.
The Society for Human Resource Management offers a certification
program to help you get the experience you need. "If you come
into it with an HR background, you're probably going to be
ahead of the game," says Abraham. "If you have a business
background, you're going to have to hire the HR
knowledge."-Lori Francisco
For More Information
Society For Human Resource
Management
1800 Duke Street
Alexandria, Virginia 22314 USA
(703) 548-3440
www.shrm.org
National Human Resources
Association
c/o Judy Huschka
JH Association Management
6767 W. Greenfield Ave.
Milwaukee, WI 53214
www.humanresources.org
Virtual HR: Human Resources
Management in the Information Age
By John W. Jones
Crisp Publications, $17.95Outsourcing
Human Resources Functions : Strategies for Providing Enhanced HR
Services at Lower Cost
By Mary F. Cook
Amacom, $75.00